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To: Cynic 2005 who wrote (14499)	2/28/1998 11:32:00 AM
From: Investor2	Read Replies (2) \| Respond to of 18056

RE: Personal Bankruptcy Rate The growing bankruptcy rate seems to be reason for concern. Do you know of a internet site which contains historical data on bankruptcy? It would be interesting to compare a graph of the bankruptcy rate to the S&P 500. Best wishes, I2 PS, Information from 1996: "The personal bankruptcy rate also surged to a new high this year. The extent to which this development reflects mounting financial difficulties of households is clouded, however, by changes in federal law (effective at the start of 1995) that may have increased the attractiveness of bankruptcy by increasing the value of assets that can be protected from liquidation in bankruptcy proceedings. The "cost" of bankruptcy to households also has been effectively lowered by the greater willingness of lenders to extend credit to riskier borrowers--even those with a previous bankruptcy on their records."

To: Cynic 2005 who wrote (14499)	2/28/1998 11:58:00 AM
From: Investor2	Read Replies (4) \| Respond to of 18056

More on Bankruptcy "More American are gambling their way to the poor house, piling up credit card debt and then filing for bankruptcy. A new study released this morning concludes there is a correlation between the rapid growth of legalized gaming and the current surge in personal bankruptcies. NJ-based SMR Research says the overall personal bankruptcy rate is 18% higher in the 298 U.S. counties which have legalized gambling and 35% higher in counties with five or more gambling outlets. Shelby County, Tennessee which has easy access to nearby Mississippi gaming establishments boasts the highest bankruptcy rate in the nation, four times the national average. SMR points out the vast majority of the nation's 2.5 million compulsive gamblers use credit cards for gambling money and more than 20% of compulsive gamblers have filed for bankruptcy. The firm estimates credit card companies must charge at least two percentage points of interest to cover bankruptcy losses. The study's release comes less than one week after the Federal Bankruptcy Review Commission adopted a draft proposal which permits easier dischargeability of credit card-gambling related debts." To answer my own question of a few posts back, the market seems to have ignored the growing bankruptcy rate since 1980. Year Total Filings 1980 331,264 1981 363,943 1982 380,251 1983 348,880 1984 348,521 1985 412,510 1986 530,438 1987 577,999 1988 613,465 1989 679,461 1990 782,960 1991 943,987 1992 971,517 1993 875,202 1994 832,829 1995 926,601 1996 1,178,555 Best wishes, I2